Everyone’s piling onto Ben Bernanke’s speech to the National Press Club yesterday.
Today it’s Art Cashin:
It’s Not My Fault! I Wasn’t Even In The Room! – One of the more remarkable aspects of the Q&A following ChairmanBernanke’s speech at the National Press Club was his defensiveness about any link between QE2 and soaring food andgrain prices around the globe. Here’s a sample of his tone:
I think it’s entirely unfair to attribute excess demand pressures in emerging markets to US monetary policy, because emerging markets have all the tools they need to address excess demand in those countries.
Mr. B was defensive on most things about QE2 but he seemed to bristle at the thought it might inspire inflationary pressure. Yet, in his Jackson Hole speech outlining QE2 and his Op-Ed piece defining it, he said a purpose was to raise some prices. One cynical trader compared it to the re-branding of “global warming” into “climate change” which allowed the citation of freezing weather as a symptom. So, too, whatever happens economically is said to prove QE2 is working.